Staff Report Item 9

TO: East Bay Community Energy Board of Directors

FROM: Bruce Jensen, Alameda County Community Development Agency

SUBJECT: Joining CalCCA as an Affiliate Member

DATE: April 12, 2017

_____________________________________________________________________________

Recommendation

Approve resolution authorizing $1,500 for an affiliate membership in California Community

Chioice Association (CalCCA), a new trade organization representing the interests of existing

and emerging Community Choice Aggregation programs (CCA) in California.

Background and Discussion

CalCCA is a new California trade association representing the interests of California’s

community choice electricity providers in the legislature and at relevant regulatory agencies,

including the California Public Utilities Commission, California Energy Commission and the

California Air Resources Board. CalCCA’s voting members are the operating CCAs in

California that pay dues on a sliding scale determined by program size. Emergent CCA

programs and local governments interested in community choice may join as affiliate members

for a flat fee of $1,500/year. Affiliate members have access to educational sessions and materials

and may attend CalCCA business meetings as non-voting members.

CalCCA’s current “operational” members include:

Apple Valley Choice Energy (launched April 1)

Clean PowerSF

Lancaster Choice Energy

MCE Clean Energy

Peninsula Clean Energy

Redwood Coast Energy Authority

Silicon Valley Clean Energy

Sonoma Clean Power

CalCCA’s current “affiliate” members include:

Central Coast Power (counties of Santa Barbara, San Luis Obispo, Ventura)

City of Corona

City of Hermosa Beach

City of San José

County of Los Angeles

County of Placer

Valley Clean Energy

Staff recommends that EBCE accept CalCCA’s invitation to join the Association as an affiliate

member. Once operational, it is recommended that EBCE consider becoming a full voting

member of the Association. For more information, please visit www.cal-CCA.org.

Attachment 9A - Resolution authorizing CalCCA membership application

Attachment 9B - CalCCA Quarterly Update - January 2017

Attachment 9C - CalCCA Monthly Newsletter February 2017

Attachment 9D - CalCCA Informational Slide Show

Attachment 9E - CalCCA Affiliate Member Application

Attachment 9F - CalCCA Comments to CPUC En Banc Hearing on February 1, 2017

-1- 12978-0001\2049488v1.doc

Attachment ___

RESOLUTION EBCE R-2017-4

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY AUTHORIZING AFFILIATE MEMBERSHIP IN CAL-CCA

THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY FIND, RESOLVE, AND ORDER AS FOLLOWS:

Section 1. The East Bay Community Energy Authority (“Authority”) operates pursuant to a Joint Powers Agreement to study, promote, develop, conduct, operate, and manage energy and energy-related climate change programs (“CCA Program”) in Alameda County.

Section 2. Cal-CCA is a California trade association representing the interests of California’s CCA Programs in the legislature and at relevant regulatory agencies, including the California Public Utilities Commission, California Energy Commission, and California Air Resources Board.

Section 3. Operating CCA Programs in California may become voting members of Cal-CCA’s, on a sliding scale determined by program size. Emergent CCA Programs and local governments interested in CCA Programs may join as affiliate members for a flat fee of $1,500 a year.

Section 4. Affiliate members have access to educational sessions and materials and may attend Cal-CCA business meetings as non-voting members.

Section 5. The Board hereby authorizes EBCE staff to accept Cal-CCA’s EBCE offer to join the Cal-CCA as an affiliate member and to submit payment of $1,500 to Cal-CCA annually to maintain such membership until such time as the EBCE becomes an operational CCA Program, when EBCE staff will return to the Board to consider becoming a full voting member of the Cal-CCA.

ADOPTED AND APPROVED this ____ day of ___________, 2017.

Chair

ATTEST:

Secretary

Cal-CCA.org 1

CCAs Created by the Legislature

• 2000 Energy Crisis prompted interest in greater transparency and local control

• AB 117 (2002, Migden): enabled energy choice through local government-based entities

• SB 790 (2011, Leno): established a CCA ‘bill of rights’ and allowed CCAs to administer efficiency programs

2

How Community Choice Works

3

Operating Programs Overview

CalCCA Members

Customer Accounts

Peak Load

Minimum RPS

(2017)

Uses Unbundled

RECs?

Annual Load 2016 GWh

Annual Load

Projected 2017 GWh

MCE 255,000 520 MW 55% 0 - 3% 2,102 2,743

Sonoma Clean Power 235,000 512 MW 43% None 2,330 2,550

Lancaster Choice Energy

52,000 132 MW 35% 8% 590 595

CleanPowerSF 73,000 93 MW 35% None 220 520

Peninsula Clean Energy 300,000 660 MW 50% None n/a 3,800

CalCCA Member Totals 915,000 1,917 MW

48% (avg) 1% (avg) 5,242 10,208

4

CCA Program Growth and Development (Average Annual MW Served)

5

6

Statewide CCA Developments

CalCCA Members

Customer Accounts

Annual Load

(GWh)

Minimum

RPS

Uses Unbundled

RECs?

Apple Valley Choice Energy 29,000 235* 35% 8%

Silicon Valley Clean Energy 243,000 2,600* 50% None

Redwood Coast Energy Authority

60,000 730* 37% None

Totals 332,000 3,565 46% (avg) <1% (avg)

Programs Launching in 2017

*Represents a partial year due to enrollment process

7

Snapshot of CCA Portfolios in 2016 (or forecast for 2017 for new programs)

8

30% 22%

53%

36% 35% 40%

50% 50%

35% 37%

6%

5%

22%

41% 36% 25%

50%

27% 23%

9%

6%

24%

44%

12%

24% 17% 14% 13%

23%

65%

25%

65%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Renewable Large Hydro Nuclear Coal Natural Gas Unspecified

Building California Renewables

• Over $1 billion in construction to date

• Majority of spending on projects with project labor agreements

• Constructing renewables quickly

• Takes 3-4 years of operations to create a diverse long-term portfolio

9

CCA Construction of New California Renewables as of January 2017

CCA Job Creation & Union Labor Support

• 2,800+ California jobs supported by MCE since 2010

• 80 jobs created by Lancaster Choice Energy since 2015

• 1.2 million union labor hours created through MCE renewable projects in 2016

11

CCA Constructed Renewables Supporting Union Labor or Local Workforce Development

12

Project Name Location Load (MW) CCA Labor

Wright Solar Park Merced County 200 Peninsula

Clean Energy Union

Tranquility Solar Fresno County 100 MCE Union

Recurrent Tranquility 8

Solar Fresno County 100 MCE Union

Rising Tree Solar Kern County 99 MCE Union

Recurrent Mustang

Solar Kings County 70

Sonoma

Clean Power Union

Recurrent Mustang

Solar Kings County 30 MCE Union

Cottonwood Solar Kern and Kings

County 23 MCE Union

RE Kansas Solar Kings County 20 MCE Union

Solar One Richmond 10.5 MCE RichmondBUILD

Western Antelope Dry

Ranch Solar LA County 10

Lancaster

Choice Energy Union

Lincoln Landfill Placer County 4.8 MCE Union

Ostrom Landfill Yuba County 1.9 MCE Union

Hay Road Landfill Solano County 1.6 MCE Union

Buck Institute Solar Novato 1 MCE Union

San Rafael Airport Solar San Rafael 1 MCE Marin City Community

Development Corp

Customer Serving Programs

• Responsive to local needs

– Low-income retrofits

– Electric vehicle focus (incl. CARE customers)

– Fuel switching

• Rapid development (3-12 months to deploy)

• Low cost to implement programs

13

CCA Customer Program Elements

CleanPowerSFLancaster

Choice EnergyPeninsula

Clean Energy

MCESonoma

Clean Power

Balanced Payment Plan In development In development

Battery Storage Rate

Customer Load Shifting

Demand Response In development In development

Electric Vehicle (EV) Rate

EV Bus Program

EV Incentives

EV Load Shifting

Energy Efficiency (EE) In development

Low-Income & Multifamily EE

Feed-In Tariff In development In development

Fuel Switching Gas to Electric

Low Income Solar Incentives

Net Energy Metering

On Bill Repayment In development In development14

Customer Serving Rates

• All low-income ratepayers continue to receive discounts

• Preferred net metering rates

• Rates set to minimize impact of IOU fees and guard against rate shock

• Local boards made up of elected officials who are ratepayers

15

Serving Low-Income (CARE) Customers

Lancaster Choice Energy CleanPowerSF

Peninsula Clean

Energy

MCE

Sonoma Clean Power

% CARE customers

by account46% 14.1%1 18.6%1 16.1% 18%

% CARE customers

by MWh25% NA NA 6.4% 16%

1 Eligible CARE accounts, CCA enrollment not yet completed in service area

16

Value for Underserved Communities

MCE • $1.7 M/year for Low-Income Tenants & Families (LIFT) energy efficiency • $75,000 allocated for 150 low-income solar rebates • $100,000 contracted with RichmondBUILD solar and energy efficiency job

training academy • $85,000 allocated to Rising Sun Energy Center to train San Pablo and El Cerrito

youth for green collar jobs • MCE Community Power Coalition partners with Communities for a Better

Environment, the Greenlining Institute, Grid Alternatives, and local community environmental justice organizations to ensure inclusive programs and policies

Sonoma Clean Power • Electric vehicle purchase and lease discounts for CARE customers • 30% of electric vehicle rebates allocated for low-income customers • Property Assessed Clean Energy (PACE) financing for home retrofits and solar • Free Do it Yourself Toolkit for home efficiency retrofits in all public libraries

17

Value for Underserved Communities

CleanPowerSF • $2M allocated for solar rebates for underserved residential customers • Larger rebates for low-income customers • 20-40% more for environmental justice neighborhoods • 500% more for CARE customers • GRID Alternatives local job training, focusing on underserved communities

Lancaster Choice Energy • Focus on low-income customers with California HERO and California first to offer

Property Assessed Clean Energy (PACE) financing • Partnering with Antelope Valley Transit Authority to convert to all-electric bus fleet in

three years • AVTA provides free local transit to seniors

18

Regulatory and Legislative Issues

• CCAs must procure all energy and resource adequacy for customers.

• CCA paradigm means there is a need for more vigilance to protect against IOU shifting cost recovery from generation to delivery

19

Thank you.

Image Credit: Flickr CC © Nicolas Raymond

cal-cca.org

AFFILIATE MEMBERSHIP APPLICATION

Applications are welcome from any incorporated California city, town or county, or JPA representing more than one of these local governments. Affiliate Members have access to educational sessions and materials and may attend CalCCA business meetings as non-voting members.

The applicant listed below is requesting membership in CalCCA as an Affiliate Member. The applicant is prepared to pay the applicable membership dues, which are currently set at $1,500 annually. Invoice for dues will be provided after membership approval by the CalCCA Board.

Agency Name: _______________________________________________________________________

Tax Identification Number: ____________________________________________________________

Address: ____________________________________________________________________________

City: ________________________________________State: _________ Zip Code: ________________

Phone: ____________________________________ Fax: _____________________________________

Website: ____________________________________________________________________________

The entity listed above is designating the following person to serve as their primary point of contact for all distribution of information. It is the responsibility of the Affiliate Member to keep the primary point of contact current at all times.

Primary Contact Name: _______________________________________________________________

Title: __________________________________________ Phone: ______________________________

Email: ______________________________________________________________________________

The information contained in this membership form is accurate and complete.

Signature: ____________________________________

Name: ____________________________________

Date: ____________________________________

Please submit completed application via email to info@cal-cca.org

MCELaunched in 2010, MCE serves more than 255,000 customers in Marin County, Napa County, and the cities of Benicia, El Cerrito, Lafayette, Richmond, San Pablo and Walnut Creek. MCE offers Light Green 50% renewable energy and Deep Green 100% renewable energy products.

2,800+ California Jobs Supported In 2016, MCE’s new renewable projects have created more than 1.2 million union labor hours. MCE’s sustainable workforce policy outlines support for local businesses, union members, training and apprenticeship programs, and support for green and sustainable businesses. MCE has committed over $1.6 billion to build 813 MW of new California renewables.

20 MW of New Local Renewable Projects MCE has 4.27 MW of new solar online in its local service area, with another 12 MW under construction. MCE’s 10.5MW solar project in Richmond is located on a brown field site and has a 50% local hire requirement. A local 3.6 MW waste-to-energy project is also under construction.

MCE Wins 2016 Green Power Leadership Award The Center for Resource Solutions presented MCE with a Green Power Leadership Award at the annual Renewable Energy Markets conference, recognizing MCE’s leadership in the development of green power markets by championing renewable energy in California.

SONOMA CLEAN POWER (SCP)Sonoma Clean Power (SCP), launched in 2014, serves approximately 450,000 customers in Sonoma County. SCP offers CleanStart 36% renewable energy and EverGreen 100% local, renewable energy.

CPUC Certifies SCP’s Plan to Serve Mendocino CountyIn December 2016, the CPUC certified SCP’s Second Revised and Updated Implementation Plan. Under this revised plan, SCP will deliver service to Mendocino County starting in June 2017.

Drive EverGreen Program Pairs Electric Vehicles and 100% Renewable EnergySCP has concluded its successful Drive EverGreen electric vehicle purchase/lease pilot. The pilot allowed customers to: 1) get an electric car by receiving SCP EV Incentive Certificates; 2) choose between discounted EV chargers or a “Juice Plug” through a program partner; 3) choose to drive on 100% renewable energy by opting up to 100% local renewable energy through SCP. During the Drive EverGreen program, SCP received almost 600 applications and distributed $480,000 in EV Incentive Certificates, 26% of which were issued to low-income customers.

LANCASTER CHOICE ENERGY (LCE)LCE began service in 2015 to 55,000 customers in the city of Lancaster, located in east Los Angeles County. LCE offers ClearChoice 35% renewable energy and SmartChoice 100% renewable energy to its customers, with approximately half of customers eligible for low-income energy programs. Lancaster is aiming to be the nation’s first zero net energy city.

LCE and sPower’s First 10MW Local Renewable Energy Project is Operational In December 2016, Lancaster and sPower, an independent energy producer, announced that a new utility-scale solar project is operational. This resource is the city’s first project and will serve up 10MW of renewable energy through a 20-year power purchase agreement with LCE. The project is expected to power over 1,800 local homes.

LCE Completes its First Year of Net Energy Metering (NEM)In October 2016, LCE celebrated its first full year of service to customers and conducted its first annual ‘true-up’ for over 3,500 NEM customers. LCE’s overproducing solar panel customers received just over $59,000 back, which is 234% more than they would have received had they remained under the Southern California Edison (SCE) NEM tariff.

LCE Pursues Three Local Solar Site DevelopmentsLCE is currently working to develop three sites for 3MW solar energy projects. This 9MW of local power will contribute to LCE’s power portfolio.

California CCA Quarterly Update January 2017California Community Choice Association (CalCCA) represents the interest of California’s community choice electricity providers in the legislature and at the relevant regulatory agencies. Each Community Choice Aggregator (CCA) chooses the sources of electricity while the utility continues to provide electric delivery services. CCA was enabled by Assembly Bill 117 in 2002, to allow local municipalities to take control of their energy supply.

CalCCA currently has seven operational members serving as its Board of Directors including: MCE, Sonoma Clean Power (SCP), Lancaster Choice Energy (LCE), CleanPowerSF, Peninsula Clean Energy (PCE), Silicon Valley Clean Energy (SVCE), and Apple Valley Choice Energy; and four affiliate members: The Cities of Davis and Corona, the counties of Los Angeles and Placer, and Central Coast Power representing the counties of Santa Barbara, San Luis Obispo, and Ventura.

cal-cca.org

CLEANPOWERSFLaunched in 2016, CleanPowerSF serves approximately 75,000 customers in San Francisco. CleanPowerSF offers Green 35% renewable energy and SuperGreen 100% Green-e certified renewable energy.

GoSolarSFIn Spring 2017, CleanPowerSF customers will be eligible for new financial incentive levels to assist with the cost of installing solar panels on residential and commercial rooftops across San Francisco.

Service and Enrollment CleanPowerSF has an opt out rate of approximately 2.4% with enrollment in SuperGreen, its 100% renewable product, at approximately 2.5%. Education and outreach to the public about CleanPowerSF continues at community group meetings, street fairs, and events. In Spring 2017, CleanPowerSF will enroll eligible NEM accounts.

PENINSULA CLEAN ENERGY (PCE)Launched in October 2016, PCE serves customers in San Mateo County, including all 20 cities and unincorporated areas. PCE currently serves 78,000 accounts, and will serve up to 300,000 accounts when enrollment is completed in April 2017. PCE offers ECOplus 50% renewable energy and ECO100 100% renewable energy products.

Robust Response to Request for Renewable EnergyPCE launched and concluded its 2016 Request for Offers (“RFO”) for renewable resources. With this RFO, PCE is expanding its purchase of clean, renewable energy for the residents and businesses of San Mateo County. PCE received a prolific response from a wide variety of projects, creating opportunities to procure cost-effective renewable energy for customers.

SILICON VALLEY CLEAN ENERGY (SVCE)Launching in April 2017, SVCE will serve customers in Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill, Mountain View, Saratoga, Sunnyvale and the unincorporated parts of Santa Clara County.

Launch Set for April 2017SVCE is preparing to launch service in April 2017 and customers will receive their first notifications in late January.

Hedging Supply PricesIn December, SVCE sought to lock supply prices with six different suppliers to meet 100% of its energy needs in 2017 and 2018, 80% in 2019, 65% in 2020 and 50% in 2021. Most of these efforts were successful, securing a cost-competitive energy supply for SVCE customers.

CCA STATEWIDECCAs are forming in over 80 jurisdictions across California. This map highlights service area of fully operational CCAs as well as jurisdictions considering joining a CCA or creating their own.

» In December 2016, the San Jacinto City Council approved their CCA implementation Plan and submitted it to the CPUC. The City of San Jacinto will be serving retail electric service customers as San Jacinto Power.

» The City of Davis and Yolo County will begin serving customers in Fall 2017 or early 2018 as Valley Clean Energy Alliance.

» Hermosa Beach Choice Energy will begin serving customers in the City of Hermosa Beach in late 2017.

» Redwood Coast Energy Authority will begin serving the county of Humboldt; the cities of Arcata, Blue Lake, Eureka, Fortuna, Rio Dell, and Trinidad in May 2017.

CalCCA Newscal-cca.org V O L U M E : 1 F E B R U A RY 2017

Save-the-Date: May 4th CalCCA Affiliate and

Operational Member MixerCalCCA will be hosting its first Affiliate and Operational Member Mixer May 4, 2017 in

the later afternoon in Long Beach, CA. Details are still developing and input is welcome!

Please contact info@cal-cca.org to make your suggestions.

Upcoming CalCCA Subcommittee and Discussion Group Meetings*

New CCA Directors Call:Friday, March 3rd, 9AM-10AM

•Legislative Discussion Group:

Thursday, March 9th, 3PM-3:30PM•

Regulatory Discussion Group: Thursday, March 30th, 10AM-11AM

Please contact info@cal-cca.org for more information regarding these meetings.

*Note, these meetings will be open

to CalCCA members only starting in March so thank you for being a member,

and supporting the growth of CCA coordinative efforts!

(Continues on next page)

Welcome from the Board PresidentI am honored to personally welcome you to CalCCA. Thank you for joining us in our developing efforts this year. In this first edition of our Member Newsletter, I am pleased to reach out to you with some important updates. The CalCCA Board is growing and now consists of eight voting Operational Members including Apple Valley Choice Energy (Joseph Moon), Lancaster Choice Energy (Cathy DeFalco), Sonoma Clean Power (Geof Syphers), MCE (Dawn Weisz), Peninsula Clean Energy (Jan Pepper), Redwood Coast Energy Authority (Matthew Marshall) and Silicon Valley Clean Energy (Tom Habashi).

CalCCA’s other memberships are expanding as well. We now have seven Affiliate Members, including: the Cities of Corona, Hermosa Beach, and San Jose; the Counties of Los Angeles and Placer; Central Coast Power representing the Counties of Santa Barbara, San Louis Obispo, and Ventura; and Valley Clean Energy representing the City of Davis and the County of Yolo. Seven Partner Members have also joined CalCCA, including: Bayshore Consulting Group, Braun Blasing McLaughlin & Smith, Intersect Power, Pacific Energy Advisors, River City Bank, Solar Electric Solutions, and ZGlobal.

Since the launch of California’s first CCA in 2010, community choice has become a key tool for local governments striving to reduce community greenhouse gas emissions and contribute to California’s climate action goals. Over 500,000 customers buy CCA energy supply which guarantees more renewables and more choice for customers. The number of customers served is expected to more than double in 2017 as new CCAs start service throughout the state.

We are looking forward to the important work ahead!

Sincerely,Barbara Hale, CalCCA Board President, CleanPowerSF

CalCCA Regulatory Update

Protest to SDG&E Plan to Market Against CCAsOn November 21, 2016, San Diego Gas and Electric (SDG&E) filed an Advice Letter at the California Public Utilities Commission (CPUC). Approval of the letter by the CPUC would authorize SDG&E to market against CCAs through a functionally separate affiliate. This has wide implications beyond San Diego County because a successful anti-CCA marketing agency could create a template to enable anti-CCA marketing efforts throughout the state. On December 12, 2016, CalCCA submitted its first formal regulatory filing protesting SDG&E’s plan to market against CCAs. The protest argued that SDG&E had not separated its anti-CCA marketing activities from the rest of its operations, giving SDG&E an unfair advantage. Additionally, the protest pointed out that SDG&E had begun marketing efforts against CCAs without the CPUC approval that is required. After CalCCA’s protest was submitted, the CPUC rejected SDG&E’s marketing plan. Therefore, SDG&E cannot currently market against CCAs. On January 27, SDG&E submitted its third Advice Letter to market against CCAs; CalCCA is evaluating its next steps for action.

CalCCA Newscal-cca.org V O L U M E : 1 F E B R U A RY 2017

PA G E 2

1125 Tamalpais Ave, San Rafael, CA 94901 • (415) 464-6689 • info@cal-cca.org • cal-cca.org

Possible Increase to CCA Bond ObligationThe Commission has re-opened an old proceeding primarily to address the bond that CCAs must post in order to begin service. On December 22, 2016, CalCCA submitted a Motion for Party Status and participated in the Prehearing Conference on February 16, 2017 (proceeding R.03-10-003).

CalCCA Actions against Potential Cost Increases to CCA Customers On January 6, 2017, CalCCA filed a formal protest regarding non-bypassable charges stemming from tree mortality. SB 895 (2016) allowed investor-owned utilities to procure biomass energy resources to mitigate wildfire risk. The bill allowed the IOUs to allocate the costs of this procurement among all customers, which may result in increased rates for CCA customers. CalCCA is awaiting further CPUC action in this proceeding (proceeding A.16-11-005).

CalCCA also filed a Motion for Party Status on January 18 in the proceeding addressing PG&E’s proposal to retire the Diablo Canyon Power Plant and allocate the costs for replacement procurement among all customers, including CCA customers who do not contract for power from Diablo Canyon. CalCCA is participating in the proceeding and has already joined as a cosignatory to the Joint Intervenors’ Testimony that was served on January 27 (proceeding A.16-08-006).

CPUC Holds First CCA En BancOn February 1 the CPUC held its first ever CCA En Banc to examine the benefits and challenges accompanying large scale expansion of CCAs in California. CalCCA Directors Hale, Syphers, and Weisz each participated in one of the three panels which examined a wide range of issues including reliability and supply, customer-facing matters, and future opportunities and obstacles. Board members Jan Pepper and Joseph Moon spoke regarding the benefits of their programs. Several CCA Board members, community members, union representatives, and state and local representatives also attended to voice their strong support of CCAs. CalCCA submitted informal written comments on the En Banc on February 23.

Meetings with CPUC LeadershipCalCCA Board Members met with CPUC Commissioner Carla Peterman and General Counsel on January 18, the CPUC Office of Governmental Affairs on January 25, and CPUC Commissioners Randolph and Rechtschaffen and CPUC Energy Director Ed Randolph, on February 15 to discuss a variety of CCA related matters and to introduce CalCCA. Meetings with new CPUC Commissioner Guzman Aceves and President Picker are currently in the process of being scheduled for March. n

CalCCA Legislative UpdateCalCCA had two successful days of lobbying in Sacramento in late January and had tremendously positive interactions with key legislators and staff regarding the most important issues facing CCAs. In addition, the CalCCA Board of Directors presented a comprehensive CCA briefing to almost 50 state legislative staff members and committee consultants. The briefing lasted 90 minutes and many staff stayed later to ask more questions which reflects the growing interest in CCAs in Sacramento. Another lobbying day is scheduled for February 28. n

Member Milestones Coming Up Next » March: CleanPowerSF initiates Request for Offer for specified

renewable energy and establishes a growth plan.

» April: Silicon Valley Clean Energy and Apple Valley Choice Energy begin to serve customers. Peninsula Clean Energy finalizes its enrollment of an estimated 300,000 customers.

» May: Redwood Coast Energy Authority begins to serve customers.

» June: Sonoma Clean Power begins service in Mendocino County n

CalCCA Board Members and Representatives on a lobbying day in Sacramento. (From left to right): Geof Syphers, Dawn Weisz, Tom Habashi, Barbara Hale, Jason Caudle, and David Burruto.

California California Community Choice Association

Board Officers

Barbara Hale, CleanPowerSE President

Geo( Syphers, Sonoma Clean Power Vice President

Dawn Weisz, MCE Secretary

Tom Habashi, Silicon Valley Clean Energy Treasurer

Joseph Moon, Apple Valley Choice Energy

Jason Caudle, Lancaster Choice Energy

Jan Pepper, Peninsula Clean Energy

Matthew Marshall, Redwood Coast Energy Authority

Affiliate Members

Central Coast Power (Santa Barbara, San Louis

Obispo, and Ventura County)

City of Corona City of Hermosa Beach City of San Jose County of Los Angeles

County of Placer Valley Clean Energy (City of Davis and Yolo County)

California Community Choice Association

1125 Tamalpais Ave San Rafael, CA 94901

(415) 464-6689 info@cal-cca.org www.cal-cca.org

February 23, 2017

Re: CalCCA Informal CCA En Banc Hearing Comments

Introduction

CalCCA would first like to thank CPUC Commissioners and staff for

taking the initiative to host the February la en banc hearing to explore CCA

issues. We are heartened by the CPUC's growing awareness of the role CCAs

can play in meeting state objectives in an efficient manner tailored to local

communities, as well as the important role the Commission must play in this

future.

CalCCA Members have demonstrated that they are treating State

statutory clean energy goals and other regulatory requirements as a floor, with

most of our members exceeding minimum compliance standards. We will

continue to defend our statutorily-defined role as the sole entity responsible

for procuring generation on behalf of our customers. CalCCA Members take this

obligation very seriously, and will work with our governing boards to develop

integrated resource plans that maximize grid value, environmental benefits,

and protect customers.

Thanks to California's robust market for renewables and the

proliferation of distributed energy resources, for-profit utilities no longer have

the burden of procuring the majority of the State's load. This is the intended

result of nearly two decades of legislation, policy, and investment — which will

continue to reduce GHGs and customer costs. We encourage the Commission

to continue to support partnership between local communities and incumbent

utilities, without disrupting this growing market with unnecessary regulation. A

natural friction arises in that CCAs seek to maximize societal benefit while IOUs

have a fiduciary responsibility to their shareholders; this natural tension lends

well to a critical role for the CPUC to ensure that the interests of California are

protected. In addition, the CPUC has ongoing important work to ensure a safe

grid, and to set and enforce clear standards to achieve climate goals in the

most economically efficient manner.

CalCCA appreciates the opportunity to submit these informal comments, which

will address factual inconsistencies as well as larger themes.

CCAs are not DA providers with a Different Structure

While both CCAs and DA providers were conceived to provide a cost-

effective service and reliable alternative to the incumbent monopoly, they are

fundamentally different business models. CCAs are not-for-profit local government agencies that

offer service to all customers in a discrete geographical area. CCAs are required by law to serve all

residential customers in their jurisdiction; they cannot and do not "cherry pick" more lucrative

energy consumers.

CCAs are governed by a board of local elected officials who oversee decisions regarding

procurement, budgets, and rates, and are directly accountable to the people who elected them.

CCA board meetings are public meetings that follow the Brown Act requirements for public noticing

and public decision-making. These elected officials, who represent both bundled and non-bundled

customers, are motivated to maintain equitable treatment between both. Lastly, as CCAs value rate

stability and not economic profit, they procure resources on a long-term basis and are committed

to serving customers in perpetuity.

IOUs Advertise and Provide GHG Information to Customers

Professor Borenstein stated that it "isn't looked well upon if IOUs advertise". However, IOUs

can — and do — frequently engage in extensive print, radio, and television advertising. CPUC Code of

Conduct Rule 8.1.1 describes various forms of marketing that is allowed without restrictions. The

CPUC's Code of Conduct protects ratepayers from IOU marketing against a CCA program until they

have established a functionally and physically separate division funded by shareholders. The CPUC

also ensures the accuracy of marketing claims. These two Commission policies arose as a reaction

to PG&E's conduct in opposition to the formation of the first CCA, Mann Clean Energy.

A representative from The Utility Reform Network (TURN) made several misstatements

about GHG disclosure requirements. The Commission does not prevent IOUs from providing GHG

information to customers. For-profit utilities and CCAs may choose to have their retail GHG

emissions audited by a third party for marketing purposes. In 2014, SCP and PG&E both used The

Climate Registry (TCR) to audit emissions under an identical protocol. The result showed that SCP's

base level portfolio produced 48% fewer GHG emissions than PG&E's. MCE also uses TCR

methodology to track and report emissions. CleanPowerSF and MCE require third-party "green-e"

certification for all resources in its 100% renewable retail products. In addition, the CPUC requires

and oversees the disclosure of energy sources using the California Energy Commission's Power

Content Label methodology. Incumbent IOUs and CCAs in their territory develop joint mailers to

provide a side-by-side comparison of energy portfolios and applicable rates. The Commission

requires that these be issued four times a year.

CalCCA agrees with TURN that RPS percentages alone do not directly reflect GHG emissions.

As such, we will continue to support implementation of legislation such as AB 1110 that calls for

uniform disclosure of GHGs by all LSEs. We would also support GHG intensity being reflected on

Joint Mailers and would welcome the opportunity to work with the CPUC and stakeholders to

implement such a requirement.

2

The TURN representative also expressed concern that PG&E's rate calculator on their

website does not work if you are a CCA customer, like he is. The CCA community was heartened to

hear PG&E agree that PG&E is responsible for providing a working rate calculator for all customers,

as this is funded through the delivery charges that PG&E collects from every customer. We look

forward to working with the CPUC to ensure that the IOUs provide this functionality for all

CU stomers.

CCAs Reduce — and do not Exacerbate — the Likelihood of Future Grid Crises

A number of comments at the en banc hearing suggested that the growth of CCAs could

lead to another "energy crisis" similar to 2000-2001. The root cause of that crisis was a market

design that forced all ESPs to procure power through the spot market, and prohibited the large

IOUs from engaging in long-term contracting. By decentralizing energy procurement activities, the

growth of CCAs reduces the risk of a future crisis. Indeed, the legislation enabling CCA formation,

AB 117 (2002), was a direct result of the electricity crisis and the Legislature's desire to prevent

future crises. Specifically, to prevent a repeat of 2000-2001, the State implemented policies and

programs to diversify risk from large for-profit utilities and ensure continued reliability. These

programs include resource adequacy, distributed generation, and community choice aggregation.

CCAs comply with the same reliability (resource adequacy) and environmental mandates (RPS,

storage) applicable to all other CPUC-jurisdictional LSEs. Parties accurately noted that CCAs are

growing — this success is a direct result of legislative action and CPUC support to reduce risk.

CCA Procurement is Significant, Transparent, and Growing Rapidly

CCAs take a long-term approach to procurement, recognizing that a prudent, risk-

minimizing portfolio requires a mix of short, mid-term, and long-term assets. The contention

advanced at the en banc hearing that CCAs do not develop new "steel in the ground" projects or

support grid stability and reliability is demonstratively false. As a result of CCAs' long-term

planning, CCAs are able to adapt to both short- and long-term changes in the electricity sector,

including changes in demand resulting from energy efficiency and DERs and changes in grid needs

for integration, storage and ramping as energy sources evolve. CCA contracting is subject to the

approval and oversight of elected board members through a public process subject to state and

local transparency laws. The same process is utilized when the CCA governing board approves its

Integrated Resource Plan (IRP).

We question whether the TURN representative's stated preference to develop new

resources is prudent in the current environment, where IOUs have significantly more capacity than

they need for reliability, and more RPS than they need for compliance. Relying solely on new

resources would be economically inefficient and harmful to ratepayers. However, if the legislature

codifies a preference for new resources, CCAs will comply.

3

Moreover, CCAs have been contracting for new, long-term renewables. As CleanPowerSF

noted, CCA solicitations for power resources have been met with an overwhelming response of

offers. Credit does not appear to be an impediment to CCA procurement, including long term

contracts. Further, there has been a diverse selection of counterparties who are doing business

with CCAs. The theme of CCAs emerging as the dominant force in procurement was accurately

highlighted by project developers, financiers, and organized labor representatives. Below is a list of

new renewable projects in California built with contracts from CCAs.

Project Contract

Size Service Length

(MW) Resource Resource Provider/Project Name Location Start Date (Years)

MCE 1 Solar San Rafael Airport San Rafael, Mann Co. 2012 20

1.6 Biogas G2 Energy! Hay Road Landfill Vacaville, Solana Co. 2013 18

4.8 Biogas Genpower / Lincoln Landfill Lincoln, Placer Co. 2013 20

1.9 Biogas G2 Energy! Ostrom Road Landfill Wheatland, Yuba Co. 2013 18

1 Solar Dominion / Buck Institute of Research on Aging Novato, Mann Co. 2016 25

0.3 Solar Rawson, Blum & Leon / Cost Plus Plaza Larkspur, Mann Co. 2016 20

1 Solar North Solar Solar Partners / Freethy Industrial Pk. Ifi Richmond, Contra Costa Co. 2016 20

1 Solar North Solar Solar Partners / Freethy Industrial Pk. 112 Richmond, Contra Costa Co. 2016 20

0.5 Solar REP Energy / Cooley Quarry Novato, Mann Co. 2017 20

1 Solar REP Energy / Cooley Quarry Novato, Mann Co. 2017 20

3.6 Biogas Waste Management / Redwood Landfill Novato, Mann Co. 2017 20

10.5 Solar MCE / Solar One Richmond, Contra Costa Co. 2017 25

20 Solar Dominion / RE Kansas Solar Stratford, Kings Co. 2015 3

23 Solar Dominion / Cottonwood Solar Stratford, Kings Co. 2015 25

99 Wind EDP Renewables / Rising Tree ill Mojave, Kern Co. 2015 3

30 Solar Recurrent Energy / Mustang Solar Power Project Leemore, Kings Co. 2018 15

100 Solar Recurrent Energy / Tranquility 8 Tranquility, Fresno Co. 2018 15

105 Solar sPower / Antelope Expansion 2 Lancaster, Los Angeles Co. 2018 20

42 Wind Terra-Gen / Voyager Wind Ill Mojave, Kern Co. 2018 12

125 Wind Terra-Gen / Los Banos Wind Los Banos, Merced Co. 2018 12

40 Solar First Solar / Little Bear Solar Mendota, Fresno Co. 2020 20

80 Solar EDF Renewables / Desert Harvest Desert Center, Riverside Co. 2020 20

SCP 1 Solar Cloverdale Soventix Cloverdale, Sonoma Co. 2017 20

1 Solar VacaSolar Millenium Petaluma, Sonoma Co. 2017 20

1 Solar Petaluma Solar Millenium Petaluma, Sonoma Co. 2017 20

12.5 Solar Pristine Sun LLC Multiple sites, Sonoma Co. 2017 20

70 Solar Recurrent Energy / Mustang Solar Power Project Leemore, Kings Co. 2016 20

46 Wind NextEra / Golden Hills Livermore, Alameda Co. 2018 20

ICE 10 Solar sPower / Western Antelope Dry Ranch Lancaster, Los Angeles Co. 2016 20

PCE 200 Solar Frontier Renewables / Wright Solar Park Santa Nella, Merced Co. 2018 20

CCAs Comply with the Same Regulatory and Legislative Requirements as Other LSEs

Professor Borenstein noted that IOUs feel they're held to "implicit standards", and a

representative from SDG&E seemed to imply that procurement mandates are not applied

uniformly to all LSEs.

4

CalCCA will refrain from conjecturing on what any implicit standards may be. It is critical to

note that CCAs do not circumvent the State's environmental mandates. As California-based load

serving entities, CCAs are subject to the same resource adequacy, renewable portfolio standard,

and emissions performance standards as all other L.SEs. The current State-mandated standards are

the floor from which all CCAs may operate, and in practice CalCCA Members are going far above

and beyond the minimum required environmental performance. This is due to a focus on creating

societal benefits, and oversight by a governing board who demand that CCAs meet additional local

requirements. For clarity's sake, a table of non-exhaustive compliance requirements for CCAs is

included in Appendix-1 of these comments.

We do agree with the representative from SDG&E that procurement mandates are not

always applied uniformly. The recent BioRAM Decision is an example of this: although CCA

customers will pay for this procurement through non-bypassable charges, CCAs were prevented

from being able to engage in this procurement for our customers despite having bark beetle

infestations in our territories. The unfortunate result is that our customers are paying for, but not

receiving, the local environmental benefits and reduced risk of fire-hazard created by the

mandates.

CalCCA Members Actively Protect Their Customers and Advocate on Their Behalf

The Office of Ratepayer Advocates (ORA) signaled in the panel that it views its responsibility

as being an advocate for all ratepayers, bundled and non-bundled. This is encouraging, as CalCCA

views ORAs mission to be a critical check on the investor owned power industry in California. The

CCA community hopes to coordinate with ORA going forward to determine the best way for all

consumers to be protected while allowing for community choice and responsibility in energy

provision. This directly aligns with the interests of our board members, who are accountable to

both bundled and un-bundled customers.

We share the frustration expressed regarding the lack of a Time-of-Use (TOU) bill

comparison tool for CCA customers. CCAs are required to rely on IOUs to provide billing services,

and are therefore dependent on IOUs to provide the same quality of billing services to all

customers. As the funds for these services come from distribution charges, we feel our customers

deserve equitable treatment. The lack of a TOU bill comparison tool for CCA customers is an

example of this issue. In response, CCAs have advocated at the Commission and directly to PG&E to

that end. We remain hopeful that this tool will be developed in the near future and would welcome

any role we can play in assisting in that development.

CalCCA Members Meet and Exceed Long-term Contract Requirements and Perform Integrated

Resource Planning

Given the significant discussion on CCA's ability to enter long-term contracts, we would like

to clarify that — as agencies committed to perpetual service in our jurisdictions — CCAs will meet or

5

exceed long-term contracting requirements stipulated in SB 350. Indeed, CalCCA Members have

never expressed resistance to complying with long-term contracting requirements. However, it is

narrowly true that a CCA may be challenged to meet long-term contract requirements in its early

days of operations. This is a practical implementation challenge CalCCA is working to overcome.

CalCCA looks forward to working with the CPUC and other parties to develop a robust long-

term procurement paradigm through the Integrated Resource Plan (IRP) process. Using the IRP to

manage all utility procurement will allow the CPUC to establish guidelines to accurately track all

procurement activities. While the IOUs will have their IRP reviewed and approved by the CPUC,

CCAs will follow the guidelines the CPUC establishes as each CCA seeks approval of its IRP through

its public process with its local governing board. Given our increasing role in statewide

procurement and ability to enter into contracts for resources more quickly than an IOU, CalCCA

expects its members to play an important role in securing resources needed to meet environmental

objectives and reliability needs.

Indifference Should be the Focus of the Power Charge Indifference Adjustment

A Southern California Edison representative made an unsupported statement that the

existing Power Charge Indifference Adjustment (PCIA) does not result in indifference for bundled

customers. The highly volatile PCIA has ballooned in the past two years and now represents over

one third of the generation component of CCA customers' bills in PG&E's service territory. Without

clear reasoning and a chance for fact finding, the notion that this charge is too low is unfounded.

In addition, SCE put forth the notion that earlier CCAs have a better environment to depart

than later CCAs, suggesting costs are pushed off to later CCA creation. This notion is not true; the

PCIA is calculated pro-rata, and only applied to the customers who depart. There is no competitive

advantage from a cost-allocation standpoint to develop a CCA sooner rather than later. This

statutorily-required principle of indifference is, in fact, exactly what the PCIA is designed to ensure.

Other Non-Bypassable Charges (NBCs)

In addition to the PCIA, CCAs are required to pay NBCs for capacity via the Cost Allocation

Mechanism (CAM). The imposition of these charges results in double-payment by CCA customers.

Standards are needed to ensure equal treatment of CCA customers compared to bundled

customers.

CCAs' Role in Energy Efficiency

We agree with NRDC's comments that CCAs are well poised to deliver programs tailored to

their local customers. CalCCA Members have a demonstrated track record of providing programs

that meet the unique needs of their communities. When MCE first launched energy efficiency (EE)

6

programs, it was directed to focus on gaps and hard-to-reach market sectors. These areas are often

overlooked, as they tend to have relatively low total-resource-cost (TRC) results. MCE launched its

multifamily and small commercial programs in late 2012, and has since demonstrated success with

high levels of program participation, competitive TRC results, and positive feedback from

participants. MCE's recently-approved Low-Income Tenants and Families (LIFT) pilot provides $1.75

million per year in Energy Savings Assistance Program (ESAP) funding to address EE needs from

disadvantaged and hidden communities. Meeting the objectives of Senate Bill (SB) 350 will require

capturing energy efficiency in these untapped and overlooked markets.

CPUC policies and regulations should be reconsidered to empower and enable CCAs to

continue innovating in these hard-to-reach market sectors. A prior CPUC Decision on CCA Energy

Efficiency (D. 14-01-033) put CCAs on equal footing with IOUs for TRC requirements and reporting

obligations. MCE's existing portfolio is less than 1% of PG&E's, and CCA portfolios do not include

statewide programs that produce high savings with relatively low administrative burdens. Instead,

CCAs focus on downstream programs, which achieve savings through direct assistance to

thousands of discrete customers to take actions that reduce energy use.

To facilitate continued successes, CPUC policies should empower and enable CalCCA

Members to continue innovating in hard-to-reach market sectors. One aspect the Commission

could assist in is reducing administrative burden. While CCAs administer a distinct portfolio of

programs within a smaller service area, they endure the same level of administrative burden as the

larger IOUs. The unfortunate result is to discourage innovation, as designing and launching new

programs is more resource-intensive. We would welcome the opportunity to work to develop a

framework to ensure fiscal responsibility while not stifling innovation.

CCAs' Role in Integrated Distributed Energy Resources

CCAs are well poised to integrate delivery of a diverse suite of resources that can reduce

greenhouse gas emissions. CCAs operated by a single entity (such as a city or county) can directly

coordinate with other applicable departments to provide customers with expanded conservation

options. Multi-member CCAs can leverage connections with member jurisdictions, funding from

outside agencies, and internal revenue to provide customers with multiple resource conservation

options beyond energy efficiency. With an emphasis on greenhouse gas reduction, CCAs have

already demonstrated their capacity for innovation in the areas of building and transportation

electrification. MCE's LIFT pilot includes an element focusing specifically on heat pumps, and MCE's

Business Plan discusses integrated delivery of energy efficiency and demand response strategies to

provide maximum opportunities for load shaping and shifting through a single customer interface.

Sonoma Clean Power's (SCP) recent electric vehicle (EV) pilot program resulted in over 200 new EVs

on the road. Notably, 30% of program funds went to CARE customers, a significantly higher

percentage than the 18% of customer accounts that are enrolled in CARE. SCP is now evaluating

that program to inform best practices for future EV programs not only in SCP's service area, but

across the state.

7

This type of flexible, non-critical load will be an important tool in integrating more

renewables and meeting SB 350 goals. To most efficiently achieve these goals, EV programs should

be geared towards customer classes based on location, with corresponding marketing and

outreach.

Distributed energy resources — from rooftop solar to EV chargers — must provide maximum

value to the grid to cost-effectively meet SB 350 goals. This will require a granular assessment of

distribution grid conditions. As discussed at the en banc hearing, CCAs were recently granted access

to IOU data that will allow them to build a map of "hot spots" on the grid where these DERs will

provide the most benefit. Maps like these, coupled with insightful customer information (e.g. those

interested in EE), will be extremely valuable to the effort to achieve state goals.

CCAs and Innovation

Commissioner Peterman expressed her interest in having the lessons learned with these

innovative CCA programs shared with the greater community. CCAs have the ability to respond

quickly and pilot new programs to test their effectiveness, such as 5CP's EV program. Within the

CCA community, CalCCA Members regularly share ideas on successful programs and are eager to

share this knowledge beyond CCAs. For example, Peninsula Clean Energy (PCE) is exploring

innovative ideas with local entrepreneurs to help support the grid with increased penetration of

renewables.

CCAs' Role in Land Use Planning

President Picker noted that CCAs are able to add value in land use planning. As government

entities, CCAs can engage with local planning officials as peers. This presents the opportunity to

develop and implement zoning regulations and guidelines that unlock more potential for local

implementation of state policy goals. This could be done, for example, by implementing zero net

energy requirements for new homes (as done in Lancaster), streamlining the permitting process for

EV chargers in targeted areas, or changing building codes to replace gas water heaters with electric.

CalCCA looks forward to partnering with the Commission to develop successful policies to

effectuate fuel switching.

CCAs' Role in Rewarding Disadvantaged Communities

Local communities are stronger when they embrace their most vulnerable members. The

volatility of the PCIA and the application of the PCIA to California Alternative Rates for Energy

(CARE) and medical baseline customers present an on-going threat to low-income and

disadvantaged communities. CCAs work to collaborate with these communities, to integrate their

perspectives into our approaches, and respond to their needs in our advocacy and programs. As

the most mature CCA, MCE has made the most progress to date. MCE's solar program offers

8

rebates exclusively to low-income customers in partnership with Grid Alternatives. $80,000 has

been allocated to-date, resulting in more than 150 low income installations and contributing to

nearly $1 million in customer bill savings. Additionally, the partnership between MCE and

RichmondBuild has supported approximately $100,000 for energy efficiency and solar job training.

MCE places a high emphasis on local workforce opportunities, and partners with the Mann City

Community Development Corporation to provide workforce re-entry opportunities in its energy

efficiency programs. MCE is requiring a minimum of 50% Richmond residents to be hired in building

its 10.5 MW solar installation at a brownfield site in Richmond.

CCAs and the Role of Provider of Last Resort

The CCA model has been designed where the IOUs are the Providers of Last Resort and

significant ratepayer protections have been put in place through CPUC decisions, implemented

through Rule 23. The Provider of Last Resort role becomes operative under three scenarios: 1) the

enrolled CCA customer opts-out; 2) the CCA decides to cease operations; or 3) the customer does

not pay for CCA service.

Under the CCA model customers have choice. While CCAs become the default suppliers in

their areas for customers they have offered service to, those customers still have the option of

opting out under state law, and returning to the Provider of Last Resort, the IOU, at any time. The

rates charged those returning customers protect bundled customers from cost shifting.

Under Rule 23, CCAs that voluntarily cease operations must provide one-year advanced

notice to the CPUC and IOU and such CCAs are responsible for all costs arising from the

termination. The customers of CCAs that are involuntarily terminated are required to pay

Transitional Bundled Commodity Service, which the Commission established to protect bundled

customers from any cost shifting that may result from CCA customers returning to bundled service.

The disorderly, abrupt termination of CCA service scenario is not realistic and the

Commission acknowledged this in D.05-12-041. If termination of service happens at all, it will likely

happen gradually, with customers opting out due to higher bills over a longer period of time. The

CPUC should be proactive, and share and promote procurement best practices to support CCA

durability. The RPS program requires a significant amount of long-term contracting, which will

provide some protection to CCAs and their customers from market price volatility (market price

shocks).

As we noted at the en banc hearing, perhaps the greatest threat to CCAs on-going

attractiveness to customers, and therefore viability, is a large swing in the PCIA. The PCIA has

proven to be highly volatile and impossible to predict. The CPUC needs to be careful that regulation

not be the cause of massive CCA market disruption.

Finally, a CCA customer may be returned to the IOU for service due to non-payment of the

CCA charges on the electric bill. After a CCA pursues a notice and collection process, which includes

outreach to the customer, the CCA may return the customer to the IOU. The CCA has no authority

9

to disconnect service. If the IOU disconnects service to the customer for non-payment of the IOU

charges on the electric bill, the IOU notifies the CCA after-the-fact.

Conclusion

CalCCA is committed to helping California advance its clean-energy goals, serving low-

income communities, and being responsible, law-abiding actors on the California grid. We see

significant potential in a future founded on local responsibility joined with CPUC coordination,

support, and oversight. There are many energy system challenges that require new approaches.

From accessing hard-to-reach components of the community, including the low-income segment,

to coordinating with local planners, locally-governed CCAs are poised to address challenges that

may be more difficult for large investor owned utilities.

CCAs take our statutory obligation to procure for our customers very seriously. We look

forward to working with the Commission to develop clear policy standards that protect all

ratepayers and shape the future of the grid, without stifling the ability of new business models to

help achieve California's goals.

Respe tf Sub 'tted,

Barbara Hale

CalCCA President

10

Appendix 1: Non-exhaustive Sample of CCA Compliance Requirements

•litial,V-i Frequency

Annual

Entity

CEC/ CPUC

Resource Adequacy (Load Forecast-Year-

Ahead)

Resource Adequacy (Compliance

Demonstration: System, Local, Flexible) Monthly CPUC

Resource Adequacy (Year Ahead

Compliance Demonstration: Local, System) Annual CEC / CPUC

Resource Adequacy (Historical Load Data) Annual CEC / CPUC

Resource Adequacy (Load Forecast

Updates) As Needed CEC

IEPR - Demand Forecast I Biennial CEC

IEPR - Resource Plans Update ] Biennial CEC

Power Source Disclosure 1 Annual CEC

QFER 1306B Quarterly CEC

Officer Certification Annual CAISO

Annual Retail Sales Report Annual CARB

Wind Power Purchases: Form 1386 Quarterly CEC

RPS Report Annual CPUC

RPS Closing Report As Requested CEC / CPUC

EIA 826 Monthly FERC

EIA 861 Annual FERC

WREGIS REC Retirement Report Annual WREGIS

AMI Data Privacy Audit , Triennial CPUC

AMI Data Privacy Report Annual CPUC

Energy Storage Tier 2 Advice Letter Biennial CPUC GHG Emission Performance Standard . Advice Letter ill Annual CPUC

Addendum to CPUC Background Paper on Community Choice Aggregators

Subject Commission

Background Paper

Language

Existing Practice Relevant Statute

and Commission

Decision

Energy Storage N/A The Commission directed CCAs to procure energy storage

commensurate with 1% of their 2020 annual peak load. The

project installation should occur no later than the end of

2024, consistent with the requirement for IOUs.

Public Utilities

Codes Section

2836(a)(1), D.13-10-

040

Renewable

Portfolio Standard

“While the CPUC

‘approves’ these plans for

IOUs, the CPUC only

‘accepts’ RPS plans for

CCAs” (page 7).

As retail sellers, CCAs submit reports to both the CPUC

and the CEC for RPS compliance. CCAs submit

procurement plans to the CPUC consistent with statutory

requirements. D.05-11-025 determined that CCAs should

follow similar steps but not the same steps for RPS

implementation purposes because the utilities are fully

regulated by the Commission. The CPUC reviews the

procurement plans to ensure that each CCA’s portfolio

content category is accurate.

The CEC verifies RPS procurement for each 3-year

compliance cycle. Retail sellers report their RPS WREGIS

and e-tag claims annually to the Energy Commission.

Public Utilities Code

Section

399.13(a)(5)(A)-(F),

D.05-11-025

Integrated

Resource Planning

“If the CPUC finds that

the CCAs’ renewable

integration needs are best

met through long-term

procurement

commitments for

resources, CCAs are also

required to make long-

term commitments”

(page 7).

CCAs can exercise their self-provision enabled by statute

by making long-term commitments to satisfy renewable

integration needs. The characteristics of these needs have

yet to be defined by the Commission. As long as the

renewable integration proposals satisfy the statutory

requirements in Section 454.51(d)(1)-(4), the Commission

should approve these proposals.

Additionally, beginning on January 1, 2021, 65% of a retail

seller’s RPS procurement must be from contracts of 10

years or more from eligible energy resources. This

requirement also applies to CCAs, because CCAs are retail

Public Utilities Code

454.51, 399.13(b)

sellers.

Resource

Adequacy

“If significant numbers of

bundled customers move

to CCAs with their

associated load, it could

become difficult to use

the utilities as a conduit

for procurement for such

purposes; potentially

IOUs may be unwilling

to procure capacity

beyond their own

customers’ needs” (page

6-7).

As currently implemented, CAM should be balanced to

maximize CCAs’ ability to determine the generation

resources used to serve their customers, in accordance with

Section 380(b)(4). The Commission has also not clearly

defined specific resource attributes that provide long-term

reliability. This lack of clarity makes it difficult for CCAs

to make informed procurement decisions to satisfy long

term reliability needs and realize the market value for those

resources.

Additionally, Section 366.2(a)(5) provides CCAs the sole

responsibility for generation procurement activities on

behalf of their customers, unless otherwise expressly

authorized by statute.

Public Utilities Code

Section 380(b)(4),

366.2(a)(5)

Energy Efficiency “MCE undertakes

residential, commercial

and financing programs”

(page 10).

In addition to residential, commercial, and financing

programs, MCE’s Low-Income Families and Tenants

(LIFT) program was recently approved by the Commission.

D.16-11-022

Transportation

Electrification

“If the CPUC and IOUs

develop rates that

encourage electric

vehicle charging at times

of day that are beneficial

to the grid, but CCAs do

not adopt those or similar

rate structures, we may

lose the opportunity for

electric vehicles to help

integrate renewables and

make the grid more

efficient” (page 10).

All CCAs have electric vehicle rates that mirror those of the

IOUs. Additionally, existing CCAs have demonstrated

interests in deploying electric vehicles to improve

renewable integration. Sonoma Clean Power recently

provided additional rebates to encourage its customers to

purchase electric vehicles. Lancaster Choice Energy is

working with the Antelope Valley Transit Authority to

replace its entire fleet with electric buses.

Transportation “CCA customers could To-date, the Commission has directed the IOUs to conduct D.16-01-023, D.16-

Electrification be eligible for both IOU

programs and CCA

programs. This presents

additional opportunities

for customers but may be

confusing for some as

there is currently no

mechanism to ensure

CCA and IOU programs

are complementary rather

than duplicative. As a

result, there is a risk that

CCA customers will pay

for electric vehicle

programs offered by the

IOU and also pay for

similar programs offered

by their CCA” (page 10).

cost recovery for updating the distribution infrastructure.

CCAs only provide generation services, and their programs

will not be duplicative of approved IOU programs that

upgrade distribution infrastructure. CCAs have also shown

willingness to collaborate with IOUs, demonstrated by the

settlement between PG&E, MCE and Sonoma Clean

Power.

01-045, D.16-12-065

Time-of-Use

(TOU) Rates

“For example, PG&E’s

software tool can only

produce rate comparisons

for bundled customers. In

addition, there is a

question about allocation

of costs for the rate

comparison tool.”

IOUs are the default billing and metering service providers

to unbundled customers, as required by Section 366.2(c)(9).

The Commission has also determined in D.04-12-046 that

costs already reimbursed in the utility revenue requirements

cannot be charged to CCAs, including billing system costs,

and costs associated with customer services. The costs for

the rate comparison tool should be recovered through the

distribution function, consistent with the statute and

Commission precedent.

Public Utilities Code

366.2(c)(9), D.04-12-

046

Low Income

Programs

“One concerns that has

been raised is that CCAs

could “cherry pick”

customers by creating

geographic boundaries

that avoid low income or

There is no market incentives for CCAs to avoid serving

low income or underserved neighborhoods. Current

discount programs for income qualified households, such as

CARE and FERA, are funded through the distribution

function, not generation.

otherwise underserved

neighborhoods. However,

there is no evidence that

this has happened with

existing CCAs” (page

12).

Additionally, CCAs have also demonstrated their

commitment to low income customers. MCE recently

received $1.7 million per year for its Low-Income Families

and Tenants pilot. MCE has also instituted a 50% local hire

requirement for its development of a 10.5 MW solar facility

at a brownfield at the Chevron refinery in Richmond, a

disadvantaged community identified by CalEnviroScreen

2.0. Sonoma Clean Power recently completed an electric

vehicle pilot program, and 30% of the program funds went

to CARE customers, who represent 18% of SCP’s

accounts.

Renewable

Energy

“Staff has not evaluated

whether CCAs can both

be more green than IOUs

and also provide lower

rates” (page 13).

There are many publicly available documents that

demonstrate CCAs’ greener portfolios and lower rates. The

links below contain rate comparison tools with information

about renewable content of each electricity rate product

provided by individual CCAs.

CleanPowerSF: http://sfwater.org/index.aspx?page=997

Lancaster Choice Energy:

http://www.lancasterchoiceenergy.com/your-options/

MCE: https://www.mcecleanenergy.org/your-energy-

choices/

Peninsula Clean Energy:

http://www.peninsulacleanenergy.com/residents/residential-

rates/

Sonoma Clean Power: http://sonomacleanpower.org/your-

options/